Federal Government Announces $357 Million in Funding for Affordable Housing in Ottawa, Ontario

May 28, 2024 TruthUSA

Ottawa and Queen’s Park have reached a $357 million deal under the National Housing Strategy to construct affordable housing in Ontario.

This development follows Ontario Premier Doug Ford’s rejection of the federal Liberals’ province-wide fourplex policy several months ago, sparking a public dispute between the two levels of government.

Federal Housing Minister Sean Fraser and provincial Municipal Affairs and Housing Minister Paul Calandra announced on May 27 that successful negotiations have led to the agreement.

“Solving the housing crisis requires a Team Canada approach,” stated Mr. Fraser and Mr. Calandra in a joint statement. “We will continue to work together, along with our municipal partners, to make sure the people of Ontario have the homes they need.”

The agreement was finalized after Ottawa received a revised action plan from the province, unlocking $357 million in federal funding, according to the ministers. This deal secures partial funding for Ontario as part of the 10-year, $82 billion National Housing Strategy agreement.

To seal the deal, Ontario submitted a revised action plan detailing the ongoing affordable housing projects receiving provincial funding, as mentioned in the statement.

Fourplex Resistance

The premier criticized Ottawa’s proposed policy as a major error during a press conference in Richmond Hill on March 21, emphasizing that builders should not be permitted to construct four units on a single property without municipal approval.

Mr. Ford has consistently argued that deciding the type of housing constructed in communities should be left to the municipalities.

“I can assure you 1,000 percent, you go in the middle of communities and start putting up four-storey, six-storey, eight-storey buildings right deep into communities, there’s going to be a lot of shouting and screaming,” Mr. Ford remarked.

“We are not going to go into communities and build four-storey or six-storey buildings beside residents.”

Mr. Fraser criticized the provincial government in an open letter posted on social media shortly after Mr. Ford’s press conference, suggesting that the Ford administration was endangering the province’s access to the $357 million in funding.

Fraser wrote in a letter dated March 21, addressed to Mr. Calandra, “If Ontario fails to provide a revised plan demonstrating how it plans to meet its housing targets under the agreement, the province will not receive $357 million allocated for affordable housing from the federal government.”

“To be candid, the proposed action plan is disappointing. It shows minimal progress towards achieving the affordable housing expansion target, aiming to accomplish only 1,184 units of the 19,660 required by the end of 2024-25. This leaves 94 percent of the target to be met in the last three years of the agreement, which is unrealistic,” Fraser added.

Initially, Fraser had stated that no further extensions past March 31 were possible since Ottawa had given the province an extra year to revise its plan in 2023. However, the minister shifted his position following further deliberations with the province.

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